GAO-06-876R, Treasury Has Sustained Its Formal Process to Promote U.S. Policies at the International Monetary Fund


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June 29, 2006: 

Congressional Committees: 

Subject: Treasury Has Sustained Its Formal Process to Promote U.S. 
Policies at the International Monetary Fund: 

In recent years, Congress has demonstrated significant interest in 
legislating U.S. policies regarding the International Monetary Fund 
(IMF). Currently, the administration is charged with responding to 
dozens of legislative mandates related to the IMF, including advocacy 
for certain IMF policies, instructions for U.S. voting positions on IMF 
assistance to borrower countries, and requirements to report to 
Congress on various aspects of U.S. participation in the IMF. 

Since 2001, we reported that the United States had maintained nearly 70 
legislative mandates prescribing U.S. policy goals at the IMF. These 
mandates covered a wide range of policies, including policies regarding 
combating terrorism, human rights, international trade, and weapons 
proliferation. As an international organization, the IMF is generally 
exempt from U.S. law. However, Congress can seek to influence IMF 
policy by directing the Secretary of the Treasury to instruct the U.S. 
Executive Director on the IMF's Executive Board[Footnote 1] to pursue 
certain policy considerations or to vote in a particular way on IMF 
programs or on assistance to specific countries. 

In 2000, Congress directed us to assess the Department of the 
Treasury's (Treasury) efforts to advance U.S. legislative mandates at 
the IMF. The Consolidated Appropriations Act for Fiscal Year 
2000[Footnote 2] requires us to report annually on the extent to which 
IMF practices are consistent with U.S. policies as set forth in federal 
law. In January 2001, we reported that Treasury instituted a formal 
process in 1999 to systematically promote congressionally mandated 
policies at the IMF.[Footnote 3] We also found that, although Treasury 
had had some influence over IMF policies, it was difficult to attribute 
the adoption of a policy within the IMF solely to the efforts of any 
one member because the IMF generally makes decisions on the basis of 
consensus. Since 2003, we have provided yearly updates on (1) the 
status of Treasury's process for advancing congressional mandates at 
the IMF and (2) the number of U.S. legislative mandates concerning the 
IMF.[Footnote 4] This report provides a similar update for 2006. 

Results in Brief: 

The Department of the Treasury has sustained a formal process for 
advancing U.S. policies at the IMF. A task force facilitates 
coordination between Treasury and the U.S. Executive Director and 
identifies early opportunities to influence decisions of IMF members. 
Since our September 2005 report, the task force has continued to meet 
on a regular basis to identify opportunities to advance legislative 
mandates at the IMF. Treasury continues to promote the task force as a 
tool for monitoring and promoting legislative mandates and other policy 
priorities by, for example, including discussion on crosscutting policy 
issues such as debt relief and focusing attention n on both present and 
prospective IMF programs. 

We have identified 70 legislative mandates that prescribe U.S. policy 
goals at the IMF, which is similar to the numbers we reported in our 
previous reports. Since our last report, 9 mandates have either 
replaced older mandates or represented amendments to mandates, and 1 
mandate, concerning direct support to the central government of 
Cambodia, has expired. Treasury continues to notify the U.S. Executive 
Director about new mandates through instruction letters. 

Background: 

Treasury has the lead role within the executive branch for formulating 
U.S. policy toward the IMF. The U.S. Executive Director is appointed by 
the President and pursues U.S. policy objectives through membership on 
the IMF's Executive Board. Treasury's Office of International Affairs, 
along with the Office of the U.S. Executive Director of the IMF, 
formulates, evaluates, and implements Treasury policy concerning U.S. 
participation in the IMF, including the policy positions and directives 
set forth in legislative mandates. 

The legislative mandates that set forth U.S. policy regarding the IMF 
cover a range of issues. Some of these, such as exchange rate policy, 
are core to the IMF's mission. This report classifies mandates into one 
of two broad categories: "policy" mandates and "directed vote" 
mandates.[Footnote 5] Policy mandates seek to foster or advocate 
certain policies at the IMF by directing Treasury to instruct the U.S. 
Executive Director to use his or her "voice," "vote," or both, on 
behalf of the United States at the Executive Board to bring about a 
policy change at the IMF. For example, the U.S. Executive Director is 
directed to encourage the IMF to adopt internationally recognized 
worker rights for borrowing countries. Directed vote mandates are more 
prescriptive, in that they instruct the United States to "oppose" or 
"vote against" loans or other IMF assistance to particular countries or 
categories of countries. For example, the U.S. Executive Director is 
directed to vote against financial assistance for a country that is not 
compliant with the Trafficking Victims Protection Act[Footnote 6] (see 
enc. I, mandate 51). 

Treasury Has a Systematic Process for Promoting U.S. Legislative 
Mandates: 

Treasury continues to use a systematic process to advance U.S. 
legislative mandates at the IMF. As we reported previously,[Footnote 7] 
Treasury created the Task Force on Implementation of U.S. Policy and 
Reforms in the IMF in March 1999 to strengthen the process by which the 
United States pursues its objectives at the IMF. In particular, the 
task force was to increase awareness among Treasury staff about the 
mandates and identify early opportunities to provide input to the U.S. 
Executive Director to influence decisions regarding IMF members' 
programs and economic reviews. Treasury also continues to make 
available to all relevant staff annual updates of its comprehensive 
legislative mandates manual, which contains all mandates applicable to 
U.S. participation in the IMF. 

The task force includes staff-level representatives from the regional 
and functional offices within Treasury's Office of International 
Affairs, Treasury's Office of the General Counsel, and the U.S. 
Executive Director's office. Task force members continue to meet 
monthly to discuss how Treasury and the U.S. Executive Director can 
best apply legislative mandates based on a country's economic 
circumstances.[Footnote 8] 

According to Treasury officials, the task force serves an important 
role as a mechanism to systematically remind Treasury officials of the 
need to address legislative mandates. Prior to each monthly meeting, 
task force members review a tentative schedule of the IMF Executive 
Board upcoming meetings to stay abreast of what countries will be 
discussed by the board. Also, Treasury officials may prepare for the 
meetings by obtaining information about other opportunities to attempt 
to influence the IMF. For example, Treasury officials may hold 
discussions with IMF officials when an IMF mission is planned to a 
particular country as part of negotiations for a new or existing 
program or an economic review. 

At the task force meetings, members discuss opportunities to implement 
mandates, including mandates of potential relevance for specific 
countries. The aim of the discussions is to identify the best 
opportunities to make a credible and convincing case for pursuing a 
mandate at a given time. Once agreement is reached on how to pursue a 
mandate, Treasury officers for the specific country collaborate with 
U.S. Executive Director staff and functional specialists to draft a 
policy position for the U.S. Executive Director. The policy position 
can take the form of input for a written statement or talking points 
for an oral statement to the Executive Board. The U.S. Executive 
Director pursues U.S. objectives, including the legislative mandates, 
through various channels at the IMF. For example, the U.S. Executive 
Director regularly makes oral or written statements to the board to 
apprise it of U.S. policy objectives regarding requests from countries 
for new programs, IMF reviews of existing programs, and regular IMF 
reviews of each members' economic policies. 

Since creating the task force, Treasury has made occasional 
modifications to its efforts to monitor and promote legislative 
mandates at the IMF. For example, in March 2001, the task force 
expanded its agenda to include not only countries scheduled for 
discussion by the IMF Executive Board but also countries that might 
need a program in the next several months. This enabled task force 
participants to focus attention on countries not yet on the board's 
calendar. In April 2004, Treasury officials initiated efforts to make 
the task force more useful for participants by, for example, 
reorganizing the meeting agenda into a table format that clearly 
indicates which mandates are relevant to particular countries. They 
also categorized the countries under discussion by differentiating 
those that currently have an IMF program from those that may need one. 
In early 2005, Treasury began transitioning its task force meetings 
from a biweekly to a monthly basis, while holding periodic meetings, as 
needed, among the country desk officers, the Office of the General 
Counsel, and the Executive Director's office. The task force also added 
crosscutting policy discussions to the agenda. As a result, according 
to Treasury officials, attendance at the task force meetings increased. 

Slight Decrease in Number of U.S. Legislative Mandates Concerning the 
IMF: 

The number of U.S. legislative mandates concerning the IMF has remained 
relatively constant for the last four years. Through our legal 
analysis, supplemented by documentation obtained from Treasury, we 
identified a total of 70 IMF-related mandates as of April 2006, 1 
mandate fewer than we identified in our September 2005 report. Since 
our last update, 9 mandates have been enacted that simply renew expired 
mandates or represent amendments to mandates. One mandate that 
instructed the U.S. Executive Director to oppose loans to the central 
government of Cambodia has expired.[Footnote 9] Treasury continues to 
provide annual notification letters concerning new mandates to the U.S. 
Executive Director's office. These notification letters instruct the 
U.S. Executive Director to take appropriate actions with respect to IMF 
mandates. 

Enclosure I identifies all directed vote and policy mandates that 
prescribe U.S. policy goals at the IMF under current federal law. The 
enclosure briefly describes the broad policy objectives that the 
mandates address and some of the actions that are required by Treasury 
and the U.S. Executive Director. The mandates date from 1945 to 2005, 
with the majority enacted in the last decade. Some mandates address 
multiple policy issues, sometimes overlapping each other. Enclosure II 
identifies some policies that are addressed in multiple 
mandates.[Footnote 10] For example, 9 mandates pertain to trade and 7 
pertain to debt issues. 

Agency Comments and Our Evaluation: 

We received written comments on a draft of this report from the 
Department of the Treasury, which we reprinted in enclosure III. 
Treasury concurred with the facts presented in this report. Treasury 
reiterated its position that the extensive legislative mandates could 
potentially undermine its effectiveness in influencing the IMF. 

Scope and Methodology: 

To describe the current process that Treasury has in place to advance 
congressional mandates at the IMF, we reviewed the list of topics that 
were discussed in the monthly task force meetings from September 2005 
to May 2006, which include summaries of major issues relating to the 
mandates. To determine the current number of IMF mandates, we analyzed 
Treasury's compilation of legislative mandates pertaining to the 
international financial institutions and documents obtained through our 
own legal research. In addition, we reviewed a January 2006 memorandum 
from Treasury to the U.S. Executive Director concerning new mandates 
and Treasury's 2006 compilation of legislative mandates applying to 
international financial institutions. We used two criteria to identify 
the relevant laws for this review: (1) any current law that explicitly 
directs the U.S. Executive Director to the IMF to use his vote at the 
IMF to achieve a policy goal and (2) any current law that seeks to have 
the U.S. Executive Director use his voice at the IMF to promote a U.S. 
policy or make a policy change. To address both objectives, we also 
interviewed officials in Treasury's Office of International Monetary 
Policy and the Office of the General Counsel. 

We conducted our review from April 2006 to June 2006 in accordance with 
generally accepted government auditing standards. 

We are sending copies of this report to other congressional committees, 
the Secretary of the Treasury, the Managing Director of the 
International Monetary Fund, and other interested parties. We will also 
make copies available to others upon request. In addition, this report 
will be available at no charge on the GAO Web site at 
[Hyperlink, http://www.gao.gov]. 

If you or your staff have any questions about this report, please 
contact Thomas Melito at (202) 512-9601 or melitot@gao.gov; or 
Stephanie J. May at (202) 512-6293 or maysj2@gao.gov. Contact points 
for our Offices of Congressional Relations and Public Affairs may be 
found on the last page of this report. GAO staff who made major 
contributions to this report are listed in enclosure IV. 

Signed by: 

Thomas Melito: 
Director, International Affairs and Trade: 

Signed by: 

Stephanie J. May: 
Managing Associate General Counsel: 
General Counsel: 

Enclosures: 

List of Congressional Committees: 

The Honorable Richard G. Lugar: 
Chairman: 
The Honorable Joseph R. Biden, Jr. 
Ranking Minority Member: 
Committee on Foreign Relations: 
United States Senate: 

The Honorable Thad Cochran: 
Chairman: 
The Honorable Robert C. Byrd: 
Ranking Minority Member: 
Committee on Appropriations: 
United States Senate: 

The Honorable Mitch McConnell: 
Chairman: 
The Honorable Patrick J. Leahy: 
Ranking Minority Member: 
Subcommittee on State, Foreign Operations, 
and Related Programs: 
Committee on Appropriations: 
United States Senate: 

The Honorable Michael G. Oxley: 
Chairman: 
The Honorable Barney Frank: 
Ranking Minority Member: 
Committee on Financial Services: 
House of Representatives: 

The Honorable Jerry Lewis: 
Chairman: 
The Honorable David R. Obey: 
Ranking Minority Member: 
Committee on Appropriations: 
House of Representatives: 

Enclosure I: 

U.S. Legislative Mandates[A] Concerning the International Monetary Fund 
(IMF): 

Law and date of enactment[B]: 22 U.S.C. 262d; Oct. 3, 1977; 
Subject matter: Human rights, international terrorism, religious 
freedom, and others, including nuclear material acquisition; 
Required actions: The Department of the Treasury (Treasury) shall 
instruct the U.S. Executive Director (USED) to oppose loans to 
countries whose governments engage in a pattern of gross violations of 
internationally recognized human rights or provide refuge to 
individuals committing acts of international terrorism by hijacking 
aircraft, unless such assistance is directed to serve basic human 
needs. Severe violations of religious freedom should be considered in 
determining if the country has engaged in gross violations of 
internationally recognized human rights. Further, Treasury is to 
instruct the USED to consider a list of concerns when carrying out its 
duties, including whether recipient countries are seeking to acquire 
unsafeguarded special nuclear material; 
Directed vote: Yes. 

Law and date of enactment[B]: 22 U.S.C. 262e; Oct. 3, 1977; 
Subject matter: Salaries and benefits of International Monetary Fund 
(IMF) employees; 
Required actions: The President shall direct the USED to take all 
appropriate actions to keep the compensation for IMF employees at a 
level comparable to the compensation provided employees of both private 
business and the U.S. government in comparable positions; 
Directed vote: No. 

Law and date of enactment[B]:  22 U.S.C. 262h; Oct. 15, 1986; 
Subject matter: Trade, mining, and surplus commodities; 
Required actions: Treasury shall instruct the USED to use his voice and 
vote on behalf of the United States to oppose any IMF assistance for 
the production or extraction of any commodity or mineral for export, if 
it is in surplus on world markets and if the export of such commodity 
or mineral would cause substantial injury to the U.S. producers of the 
same, similar, or competing commodity or mineral; 
Directed vote: Yes. 

Law and date of enactment[B]: 22 U.S.C. 262k Aug. 15, 1985; 
Subject matter: Impact of country adjustment programs on industries and 
commodity markets and opposition to assistance for copper refining and 
copper commodity export; 
Required actions: Treasury shall instruct the USED to consider, when 
reviewing loans, credits, or other uses of IMF resources, the effect 
that country adjustment programs would have on individual industries' 
sectors and international commodity markets, including specific 
criteria to be considered as a basis for a vote against certain mining 
and related project proposals. Specifically, in the case of copper, 
Treasury shall instruct the USED to use the voice and vote of the 
United States to oppose any assistance using appropriated funds for the 
production of any copper commodity for export or for the financing of 
the expansion, improvement, or modernization of copper mining, 
smelting, and refining capacity; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262k-1 Sept. 30, 1996; 
Subject matter: Military spending and audits;
Required actions: Treasury shall instruct the USED to use his voice and 
vote to oppose any loan, other than for basic humanitarian needs, to 
any country that the Secretary of the Treasury determines does not have 
in place a functioning system for reporting to civilian authorities 
audits of receipts and expenditures that fund activities of the armed 
and security forces and that has not provided to the IMF information 
about the audit process requested by the institution; 
Directed vote: Yes. 

Law and date of enactment[B]: 22 U.S.C. 262k-2 Sept. 30, 1996; 
Subject matter: Female genital mutilation; 
Required actions: Treasury shall instruct the USED to use his voice and 
vote to oppose any loan, other than for basic humanitarian needs, for 
any government that the Secretary of the Treasury determines has a 
known history of practicing female genital mutilation and has not taken 
steps to implement educational programs designed to prevent this 
practice; 
Directed vote: Yes. 

Law and date of enactment[B]: 22 U.S.C. 262n-3 Oct. 21, 1998; 
Subject matter: Trade barriers and agricultural commodities; 
Required actions: Treasury shall instruct the USED to use aggressively 
his voice and vote to vigorously promote policies to encourage the 
opening of markets for agricultural commodities and products by 
requiring recipient countries to make efforts to reduce trade barriers;
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262o-1 Aug. 23, 1994; 
Subject matter: Military spending and good governance; 
Required actions: Treasury shall instruct the USED to consider, when 
deciding whether to support a country's loan program, the extent to 
which IMF borrowing countries have demonstrated a commitment to (1) 
providing accurate and complete data on military spending; (2) 
establishing good and publicly accountable governance, including ending 
excessive military involvement in the economy; and (3) making 
substantial reductions in excessive military spending and forces. The 
USED shall promote a policy that seeks to channel funding toward growth 
and development priorities and away from unproductive expenditures, 
including military spending; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262o-2 Oct. 21, 1998; 
Subject matter: Transparency, debt, private sector, trade, crisis 
lending, exchange rates, labor, the environment, military spending, 
sound banking, social safety nets, good governance, corruption, the 
poor, ethnic and social strife, and money laundering and financing of 
terrorism; 
Required actions: Treasury shall instruct the USED to use aggressively 
his voice and vote to enhance the general effectiveness of the IMF with 
respect to numerous issues, including exchange rate stability: trade 
liberalization: antitrust reform: core labor standards: social safety 
nets: sound banking principles: private sector burden-sharing: 
disclosure of market information; debt; crises lending; good 
governance; procurement reform; corruption and bribery; drug- related 
money laundering; excessive military spending; ethnic and social 
strife; environmental protection; transparency; microenterprise 
lending, especially to the world's poorest, heavily indebted countries; 
anti-money laundering (AML); and combating the financing of terrorism 
(CFT) regimes; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262p-4n Nov. 5, 1990; 
Subject matter: Equal employment opportunities at the IMF; 
Required actions: Treasury shall instruct the USED to use his voice and 
vote to urge the IMF to adopt policies and procedures that ensure that 
the IMF does not discriminate against any person on the basis of race, 
ethnicity, gender, color, or religious affiliation in any determination 
related to employment; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262p-4o Aug. 23, 1994; 
Subject matter: Respect for indigenous peoples; 
Required actions: Treasury shall direct the USED to use his voice and 
vote to bring about the creation and full implementation of policies 
designed to promote respect for and full protection of the territorial 
rights, traditional economies, cultural integrity, traditional 
knowledge, and human rights of indigenous peoples; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262p-4p Aug. 23, 1994; 
Subject matter: Internationally recognized worker rights; 
Required actions: Treasury shall direct the USED to use his voice and 
vote to urge the IMF to adopt policies to encourage borrowing countries 
to guarantee certain internationally recognized worker rights and to 
include the status of such rights as an integral part of the policy 
dialogue with each country. In addition, the USED shall urge the IMF to 
establish formal procedures to screen projects and programs for any 
negative impact in a borrowing country with respect to those rights; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262p-4q Apr. 24, 1996; 
Subject matter: State support of international terrorism; 
Required actions: Treasury shall instruct the USED to use his voice and 
vote to oppose any loan for a country for which the Secretary of State 
has made a determination that it is a terrorist state; 
Directed vote: Yes. 

Law and date of enactment[B]: 22 U.S.C. 262p-4r Oct. 26, 2001; 
Subject matter: Terrorism; 
Required actions: Treasury may instruct the USED to use aggressively 
the voice and vote of the United States to require an auditing of IMF 
disbursements to ensure that no funds are paid to persons who commit, 
threaten to commit, or support terrorism. In addition, if the President 
determines that a country has committed to take actions that contribute 
to efforts of the United States to respond to, deter, or prevent acts 
of international terrorism, Treasury may instruct the USED to use the 
voice and vote of the United States to support any loan or other use of 
IMF funds for such country; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262p-6 Nov. 29, 1999; 
Subject matter: Debt relief; 
Required actions: Treasury should urge the IMF to complete a debt 
sustainability analysis by December 31, 2000, and determine eligibility 
for debt relief for as many countries under the modified Heavily 
Indebted Poor Countries Initiative as possible. Treasury shall make 
every effort (including instructing the USED) to ensure that an 
external assessment of the Heavily Indebted Poor Countries Initiative 
takes place by December 31, 2001; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262p-7 Nov. 29, 1999; 
Subject matter: Extended Structural Adjustment Facility reform; 
Required actions: Treasury shall instruct the USED to use his voice and 
vote to promote the IMF's establishment of poverty reduction policies 
and procedures to support countries' efforts under programs developed 
and jointly administered by the World Bank and the IMF containing those 
components listed in the mandate; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 262t ; Dec. 19, 1989; 
Subject matter: Personnel practices at the IMF; 
Required actions: It shall be U.S. policy that no initiatives, 
discussions, or recommendations concerning the placement or removal of 
any personnel employed by the IMF shall be based on the political 
philosophy or activity of that individual; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286e-8 Oct. 10, 1978; 
Subject matter: Treatment of creditors in debt rescheduling; 
Required actions: Treasury shall instruct the USED to seek to assure 
that no decision by the IMF departs from U.S. policy regarding the 
comparability of treatment of public and private creditors in cases of 
debt rescheduling where official U.S. credits are involved; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286e-9 Oct. 10, 1978; 
Subject matter: Investment, employment, and basic human needs; 
Required actions: Treasury shall instruct the USED to encourage IMF 
staff to formulate economic stabilization programs that foster a 
broader base of productive investment and employment, especially in 
those productive activities that are designed to meet basic human 
needs; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286e-11 Oct. 10, 1978; 
Subject matter: Countries harboring international terrorists; 
Required actions: Treasury shall instruct the USED to work in 
opposition to financing for countries either harboring international 
terrorists or failing to take measures to prevent acts of international 
terrorism; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286k July 31, 1945;
Subject matter: International trade and economic stability; 
Required actions: In considering the policies of the United States in 
foreign lending, the USED shall give careful consideration to progress 
made in reaching agreement among nations to reduce restrictions on 
international trade and promote international economic stability; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286s Oct. 7, 1980; 
Subject matter: Basic human needs and economic adjustment programs; 
Required actions: The USED shall recommend and work for changes in IMF 
guidelines to ensure the effectiveness of economic adjustment programs 
by considering the effect the program will have on issues such as jobs 
and investment. The USED shall also work toward improved coordination 
among the IMF, the World Bank, and other appropriate institutions in 
this area; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286u Oct. 7, 1980; 
Subject matter: Dollar-Special Drawing Rights substitution account; 
Required actions: Treasury shall encourage IMF member countries to 
negotiate a dollar--Special Drawing Rights substitution account in 
which equitable burden-sharing would exist among participants in the 
account; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286v Oct. 7, 1980; 
Subject matter: Membership for Taiwan in the IMF; 
Required actions: The USED shall notify the IMF that it is U.S. policy 
that Taiwan be granted appropriate membership in the IMF; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286w; Oct. 7, 1980; 
Subject matter: Denial of membership for the Palestinian Liberation 
Organization; 
Required actions: The USED shall notify the IMF that it is U.S. policy 
that the Palestinian Liberation Organization not be given membership or 
other status at the IMF; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286x Oct. 7, 1980; 
Subject matter: Assistance to private sector of El Salvador, Nicaragua, 
and other nations; 
Required actions: The USED shall promote the use of IMF programs to 
assist the private sector in any nation, though particularly El 
Salvador and Nicaragua, in creating an environment that will stabilize 
a nation's economy; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286y; Nov. 30, 1983; 
Subject matter: Exchange rate stability; 
Required actions: The USED shall work for adoption of policies in the 
IMF to promote exchange rate stability. Also, in determining a vote of 
assistance to any IMF borrower, the USED shall take into account 
whether the borrower's policies are consistent with certain IMF 
requirements; 
Directed vote: No. 

Law and date of enactment[B]: 22 U.S.C. 286z; Nov. 30, 1983; 
Subject matter: Transparency; 
Required actions: Treasury shall instruct the USED to initiate 
discussions at the IMF, and propose and vote for adoption of procedures 
to increase both the sharing of information among IMF members and the 
public dissemination of certain IMF information concerning 
international borrowing and lending; 
Directed vote: No. 

29; 22 U.S.C. 286aa Nov. 30, 1983; 
Denial of lending to communist dictatorships; 
Treasury shall instruct the USED to actively oppose any facility 
involving use of IMF credit by any communist dictatorship unless 
certain conditions are met; 
Yes. 

30; 22 U.S.C. 286bb Nov. 30, 1983; 
Elimination of predatory agricultural export subsidies; 
Treasury shall instruct the USED to propose and work for the adoption 
of an IMF policy encouraging members to eliminate all predatory 
agricultural export subsidies that might result in the reduction of 
other member countries' exports; 
No. 

31; 22 U.S.C. 286cc Nov. 30, 1983; 
Trade, bank solvency, and external debt servicing; T
he USED shall recommend and shall work for changes in IMF guidelines 
and policies that encourage countries to formulate economic adjustment 
programs that deal with their balance-of-payment difficulties and 
external debt owed to private banks. The USED shall also oppose and 
vote against fund assistance for a country whose annual external debt 
services exceed 85 percent of its annual export earnings, unless 
Treasury can document why an exception should be given; 
Yes. 

32; 22 U.S.C. 286dd Nov. 30, 1983; 
Bank bailouts and debt rescheduling; 
Treasury shall instruct the USED to oppose and vote against any IMF 
drawing by a member country that would be used to repay loans 
imprudently made by banking institutions to a member country and to 
ensure that the IMF encourages borrowing countries and banking 
institutions to renegotiate a rescheduling of debt that is consistent 
with safe and sound banking practices and the country's ability to pay;
Yes. 

33; 22 U.S.C. 286ee Nov. 30, 1983; 
International lending and external indebtedness; 
Treasury shall instruct the USED to propose that the IMF adopt policies 
with respect to international lending, including a policy to examine 
the trend and volume of external indebtedness of private and public 
borrowers in Article IV consultations; 
No. 

34; 22 U.S.C. 286ff ; Nov. 30, 1983; 
IMF interest rates; 
Treasury shall instruct the USED to propose and work for the adoption 
of IMF policies regarding the rate of remuneration paid on use of 
members' quota subscriptions and the rate of charges on IMF drawings to 
bring those in line with market rates; 
No. 

35; 22 U.S.C. 286gg Nov. 30, 1983; 
Elimination of trade and investment restrictions; 
Treasury shall instruct the USED to consult with the IMF to reduce 
obstacles to and restrictions upon international trade and investment 
in goods and services, eliminate unfair trade and investment practices, 
and promote mutually advantageous economic relations. The USED shall 
also work to have the IMF obtain agreement with countries to eliminate 
certain unfair trade and investment practices and shall take a 
country's progress into account in formulating its position on requests 
for loans for periodic financial disbursements; 
No. 

36; 22 U.S.C. 286kk Dec. 19, 1989; 
Impact of IMF programs on the poor and the environment; 
Treasury shall instruct the USED to seek policy changes at the IMF that 
will result in a review of policy prescriptions implemented by the IMF 
to determine whether IMF objectives were met, the social and 
environmental impacts of such prescriptions, and the establishment of 
procedures to ensure policy options that reduce the potential adverse 
impact on the poor or the environment are included in future economic 
reform programs; 
No. 

37; 22 U.S.C. 286ll Oct. 24, 1992; 
IMF policy concerning transparency, the poor, and the environment; 
Treasury shall instruct the USED to promote regularly and vigorously in 
program and quota increase discussions a variety of policy proposals, 
including a proposal designed to alleviate poverty, promote policy 
audits in the areas of poverty and the environment, and allow public 
access to certain IMF information; 
No. 

38; 22 U.S.C. 286mm Oct. 24, 1992; 
Measures to reduce military spending; 
The USED shall use his voice and vote to urge the IMF to continue to 
develop an economic methodology to measure the level of military 
spending by every developing country. The USED shall also urge the IMF 
to provide annual reports that estimate the level of military spending 
by each developing country and urge the IMF to include an analysis on 
this issue in every Article IV consultation with such countries; 
No. 

39; 22 U.S.C. 286nn Nov. 29, 1999; 
Debt reduction; 
Treasury is authorized to instruct the USED to vote to approve the sale 
of gold such that proceeds can be used toward debt reduction for the 
Heavily Indebted Poor Countries Initiative and to support a decision to 
terminate the Special Contingency Account 2 (SCA-2) and make the funds 
in the SCA-2 available to the poorest countries; 
No. 

40; 22 U.S.C. 286oo Nov. 6, 2000; 
Short-and medium-term financing, misreporting, and premium pricing; 
It is the policy of the United States to work to implement reforms in 
the IMF to achieve the following goals: primarily using short-term 
balance-of-payments financing, limiting the use of medium-term 
financing, introducing premium pricing for lending that is greater than 
200 percent of a member's quota in the IMF, and redressing cases of 
misreporting of information in the context of IMF programs; 
No. 

41; 22 U.S.C. 2225; Dec. 30, 1974; 
Integration of women; T
reasury is requested to instruct the USED to encourage and promote the 
integration of women into the national economies of IMF member 
countries and into professional positions within the IMF organization. 
In addition, Treasury is to take any progress or lack of progress into 
account when making contributions to the IMF; 
No. 

42; 22 U.S.C. 2370a Apr. 30, 1994; 
Expropriation of U.S. property; 
Treasury shall instruct the USED to vote against any use of IMF funds 
for the benefit of any country that has, after 1956, nationalized or 
expropriated U.S. property without compensation or adequate 
arbitration, unless the funds are directed to programs that serve the 
basic human needs of the citizens of that country, or the President 
waives this prohibition on the basis of U.S. national interests; 
Yes. 

43; 22 U.S.C. 2656 note (Pub. L. No. 107-228, sec. 633, Sept. 30, 
2002); 
East Timor; 
Treasury shall instruct the USED to use the voice, vote, and influence 
of the United States to support economic and democratic development in 
East Timor; 
No. 

44; 22 U.S.C. 2799aa-1; Apr. 30, 1994; 
Nuclear transfers and illegal exports; 
The U.S. government shall oppose the extension of any IMF loan or 
financial or technical assistance to any country that transfers to a 
nonnuclear weapon state a nuclear explosive device or any design 
information or component for use in the development or manufacture of a 
nuclear explosive device. Additionally, the U.S. government shall 
oppose the extension of any IMF loan or financial or technical 
assistance to any nonnuclear weapon state that receives or detonates a 
nuclear explosive device or seeks and receives any design information 
or component for use in the development or manufacture of a nuclear 
explosive device. The President may waive application of this section 
with respect to India and Pakistan under certain conditions. (See Pub. 
L. No. 106-79, sec. 9001.); 
Yes. 

45; 22 U.S.C. 5605; Dec. 4, 1991; Sanctions against use of chemical and 
biological weapons; The United States shall oppose, in accordance with 
22 U.S.C. 262d, the extension of any loan or financial or technical 
assistance to any country that the President determines uses chemical 
or biological weapons either in violation of international law or 
against its own nationals. The President may waive application of this 
section under certain conditions; Yes. 

46; 22 U.S.C. 6034; Mar. 12, 1996; 
Opposition to Cuban membership; 
Treasury shall instruct the USED to use the voice and vote of the 
United States to oppose admission of Cuba as a member of the IMF until 
the President submits a determination that a democratically elected 
government is in power in Cuba; 
Yes. 

47; 22 U.S.C. 6302; Apr. 30, 1994; 
Nuclear nonproliferation; 
Treasury shall instruct the USED to use the voice and vote of the 
United States to oppose any use of IMF funds to promote the acquisition 
of unsafeguarded special nuclear material or the development, 
stockpiling, or use of any nuclear explosive device by any nonnuclear 
weapon state; 
Yes. 

48; 22 U.S.C. 6445 Oct. 27, 1998; 
Religious freedom; 
The President shall instruct the USED to oppose and vote against loans 
primarily benefiting a foreign government, agency, instrumentality, or 
official determined by the President to be a violator of religious 
freedoms; 
Yes. 

49; 22 U.S.C. 6713 Oct. 21, 1998; 
U.S. liability, confidential business information, and chemical 
weapons; 
The United States shall oppose any IMF loan or financial or technical 
assistance to any foreign person, officer, or employee of the 
Organization for the Prohibition of Chemical Weapons whose actions 
taken in the implementation of the Chemical Weapons Convention make the 
United States liable. The United States shall also oppose any IMF loan 
or financial or technical assistance to any foreign person, business 
entity, or country that knowingly encourages or assists such a person 
in disclosing U.S. confidential business information; 
Yes. 

50; 22 U.S.C. 6901 note (Pub. L. No. 107-228, sec. 616, Sept. 30, 
2002); 
Tibet; 
Treasury shall instruct the USED to use the voice and vote of the 
United States to support projects in Tibet, so long as the projects are 
designed in accordance with certain enumerated principles, such as that 
the project fosters self-sufficiency and self-reliance of Tibetans; 
No. 

51; 22 U.S.C. 7107; Oct. 28, 2000; 
Combat trafficking in persons; 
The President will instruct the USED to vote against, and to use his 
best efforts to deny, any loan or other use of IMF funds for the 
subsequent fiscal year to a country that fails to comply or is not 
making significant efforts to bring itself into compliance with the 
minimum standards for the elimination of trafficking in persons. If 
certain requirements are met, this mandate does not apply to 
humanitarian assistance, trade-related assistance, or development 
assistance and can be waived by the President if the continuation of 
assistance is in the national interest; 
Yes. 

52; 50 U.S.C. 1701 note (Pub. L. No. 103-160, sec. 1511, Nov. 30, 1993 
& Pub. L. No. 104-208, sec. 540, Feb. 12, 1996); 
Serbia or Montenegro; 
Treasury shall instruct the USED to use the voice and vote of the 
United States to oppose any IMF assistance to the governments of Serbia 
or Montenegro, except for basic human needs or unless a proper waiver 
or certification is made; 
Yes. 

53; Pub. L. No. 104-208, sec. 570, Sept. 30, 1996; 
Burma and human rights and democratic government; 
Treasury shall instruct the USED to vote against any utilization of IMF 
funds for Burma until such time as the President certifies to Congress 
that Burma has made measurable and sustainable progress in improving 
human rights practices and implementing a democratic government in 
Burma, or the President waives the sanction by certifying to Congress 
that the sanction is contrary to U.S. national interests; 
Yes. 

54; Pub. L. No. 106-113, sec. 504, Nov. 29, 1999; 
IMF operational budget; 
Treasury shall instruct the USED to use the voice, vote, and influence 
of the United States to urge vigorously the IMF both to publish the 
operational budgets of the IMF on a quarterly basis, not later than 1 
year after the end of the period covered by the budget, and to continue 
to forgo reimbursements of the expenses incurred by the IMF in 
administering the Enhanced Structural Adjustment Facility, until the 
Heavily Indebted Poor Countries initiative is terminated; 
No. 

55; Pub. L. No. 107-99, sec. 4, Dec. 21, 2001; 
Zimbabwe; 
If the President certifies to the appropriate congressional committees 
that certain conditions have been met in Zimbabwe, including the 
restoration of the rule of law and a commitment to equitable, legal, 
and transparent land reform, then the Treasury should direct the USED 
to propose to undertake financial and technical support for Zimbabwe, 
especially support that is intended to promote Zimbabwe's economic 
recovery and development, the stabilization of the Zimbabwean dollar, 
and the viability of Zimbabwe's democratic institutions. Until the 
President makes a certification, however, and except as may be required 
to meet basic human needs or for good governance, the Treasury shall 
instruct the USED to oppose and vote against any IMF loan, credit, or 
guarantee to the government of Zimbabwe or any cancellation or 
reduction of indebtedness owed by the government of Zimbabwe to the 
IMF; 
Yes. 

56; Pub. L. No. 107-245, sec. 6, Oct. 21, 2002; 
Sudan; 
After April 10, 2003, and every 6 months thereafter, if the President 
certifies that the government of Sudan has not engaged in good faith 
negotiations to achieve a permanent and just peace agreement, or has 
unreasonably interfered with humanitarian efforts in Sudan, then the 
Treasury shall instruct the USED to continue to vote against, and 
actively oppose, any extension of any IMF loan, credit, or guarantee to 
the government of Sudan; 
Yes. 

57; 50 U.S.C. 1701 note (Pub. L. No. 108-61, sec. 5, Jul. 28, 2003); 
Burmese Freedom and Democracy Act; 
Treasury shall instruct the USED to oppose and vote against extending 
any IMF loan or financial or technical assistance to Burma until 
certain conditions are met, including that the State Peace and 
Development Council has made substantial progress to end human rights 
violations, to implement a democratic government, and that Burma is not 
designated as a country that has failed demonstrably to adhere to its 
obligations under international counternarcotics agreements; 
Yes. 

58; Pub. L. No. 108-11, sec. 1503, Apr. 16, 2003 (as amended by Pub. L. 
No. 108-106, sec. 2204, Nov. 6, 2003); 
Lifting of Iraqi Sanctions; 
Provisions of law that direct the U.S. Government to vote against or 
oppose loans or other use of funds in the IMF, including for financial 
or technical assistance, for Iraq shall not be construed as applying to 
Iraq; 
No. 

59; Pub. L. No. 108-347, sec. 5, Oct. 20, 2004; 
Belarus Democracy Act; 
Treasury should instruct the USED to use the voice and vote of the 
United States to oppose the extension of any financial assistance, 
including any technical assistance or grant, to the government of 
Belarus, except for loans and assistance to serve humanitarian needs; 
Yes. 

60; Pub. L. No. 108-458, sec. 7111, Dec. 17, 2004; 
Membership and leadership positions; 
The President, acting through the Secretary of the Treasury, should use 
the voice, vote, and influence of the United States to (1) reform, 
where appropriate, the criteria for leadership and, in appropriate 
cases, for membership at the IMF so as to exclude countries that 
violate the principles of the organization; (2) make it an IMF policy 
that a member country may not stand in nomination for membership or in 
nomination or in rotation for a significant leadership position if the 
country is subject to sanctions imposed by the UN Security Council; and 
(3) work to ensure that no member country stands in nomination for 
membership or in nomination or in rotation for a significant leadership 
position if the government has been determined by the Secretary of 
State to have repeatedly provided support for acts of international 
terrorism; 
No. 

61; Pub. L. No. 108-497 (50 U.S.C. 1701 note), Dec. 23, 2004; 
Comprehensive Peace in Sudan Act; Notwithstanding the certification 
requirement in paragraph (1) of Section 6(b) of the Sudan Peace Act 
(Pub. L. No. 107-245), 
Treasury shall instruct the USED to continue to vote against, and 
actively oppose, any extension of any IMF loan, credit, or guarantee to 
the government of Sudan; 
Yes. 

62; Pub. L. No. 109-102, sec. 501, Nov. 14, 2005; 
Compensation for the USED; 
No funds appropriated by the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 2006, may be made as payment to 
the IMF while the USED is compensated by the IMF at a rate that, 
together with the compensation the USED receives from the United 
States, is in excess of the rate provided for an individual occupying a 
position at level IV of the Executive Schedule under 5 U.S.C. 5315, or 
while the alternate U.S. Director is compensated by the IMF at a rate 
in excess of the rate provided for an individual occupying a position 
at level V of the Executive Schedule under 5 U.S.C. 5316; 
No. 

63; Pub. L. No. 109-102, sec. 514, Nov. 14, 2005; 
Trade, mining, and surplus commodities; 
Treasury shall instruct the USED to use the voice and vote of the 
United States to oppose any IMF assistance for the production or 
extraction of any commodity or mineral for export, if it is in surplus 
on world markets and if the assistance will cause substantial injury to 
the U.S. producers of the same, similar, or competing commodity; 
Yes. 

64; Pub. L. No. 109-102, sec. 526(a), Nov. 14, 2005; 
Burma; 
Treasury shall instruct the USED to oppose and vote against extending 
IMF loans or financial or technical assistance or any other utilization 
of IMF funds to and for Burma; 
Yes. 

65; Pub. L. No. 109-102, sec. 561, Nov. 14, 2005; 
Countries providing sanctuary to indicted war criminals; 
Treasury shall instruct the USED to vote against any new project 
involving the extension of financial or technical assistance to any 
country whose authorities have failed, as determined by the Secretary 
of State, to take necessary and significant steps to apprehend and 
transfer to the International Criminal Tribunal for the former 
Yugoslavia all persons indicted by the Tribunal and to otherwise 
cooperate with the Tribunal. This section does not apply to 
humanitarian assistance and assistance for democratization; 
Yes. 

66; Pub. L. No. 109-102, sec. 562, Nov. 14, 2005; 
User fees; 
Treasury shall instruct the USED to oppose any loan, grant, strategy, 
or policy of the IMF that would require user fees or service charges on 
poor people for primary education or primary health care, including 
prevention and treatment efforts for Human Immunodeficiency Virus/ 
Acquired Immune Deficiency Syndrome, malaria, tuberculosis, and infant, 
child, and maternal well-being, in connection with the IMF's financing 
program; 
Yes. 

67; Pub. L. No. 109-102, sec. 563, Nov. 14, 2005; 
Serbia and Montenegro; 
After May 31, 2006, Treasury should instruct the USED to support loans 
and assistance to the government of Serbia and Montenegro subject to 
certain conditions, including that the government of Serbia and 
Montenegro is taking steps consistent with the Dayton Peace Accord to 
end financial, political, security, and other support that served to 
maintain separate Republika Srpska institutions. With respect to such 
loans, 22 U.S.C. 262k-1, which requires transparency of military 
budgets, shall not apply; 
Yes. 

68; Pub. L. No. 109-102, sec. 585, Nov. 14, 2005; 
Extraction and export of natural resources; 
Treasury shall inform the management of the IMF that it is the policy 
of the United States that the IMF should not provide assistance for the 
extraction and export of oil, gas, coal, timber, or other natural 
resource to any country unless the government of the country has in 
place or is working to establish functioning systems to (1) accurately 
account for revenues and expenditures in connection with the extraction 
and export of such natural resources, (2) independently audit such 
accounts and disseminate the audits, and (3) verify government receipts 
against company payments and disseminate such payment information in a 
manner that does not create competitive disadvantage or disclose 
proprietary information; 
No. 

69; Pub. L. No. 109-102, sec. 572, Nov. 14, 2005; 
Zimbabwe; 
Treasury shall instruct the USED to vote against any extension of any 
IMF loans to the government of Zimbabwe, except to meet basic human 
needs or to promote democracy, unless the Secretary of State determines 
and certifies to the Committees on Appropriations that the rule of law 
has been restored in Zimbabwe, including respect for ownership and 
title to property and for freedom of speech and association; 
Yes. 

70; Pub. L. No. 109-102, sec. 575(a), Nov. 14, 2005; 
Tibet; 
Treasury should instruct the USED to use the voice and vote of the 
United States to support projects in Tibet, if the projects do not 
provide incentives for migration and settlement of non-Tibetans into 
Tibet or facilitate the transfer of ownership of Tibetan land and 
natural resources to non- Tibetans; are based on a thorough needs-
assessment; foster self- sufficiency of Tibetan people and respect 
Tibetan culture and traditions; and are subject to effective 
monitoring; 
No. 

Source: GAO. 

Notes: The information in this enclosure is based on a GAO analysis of 
policy and directed vote legislative mandates concerning the IMF. 

Mandates shown in bold represent mandates that were enacted since our 
last report in September 2005 and simply replaced older mandates or 
represent amendments to mandates. 

[A] Treasury puts mandates in three broad categories: "policy," 
"directed vote," and "reporting" mandates. Policy mandates direct the 
United States to foster or urge a certain policy at the IMF. Directed 
vote mandates instruct the United States to "oppose" or "vote against" 
loans or other IMF assistance. Reporting mandates are outside the scope 
of this report. 

[B] This column reports the original date of enactment. However, many 
of these mandates were amended subsequent to this date. 

[End of table] 

Enclosure II: 

Examples of Broad Policies That Are Addressed in Multiple Laws[A]:  

Broad policy objective: Administrative and personnel matters; 
Law: 22 U.S.C. 2225 (Dec. 30, 1974) 22 U.S.C. 262e (Oct. 3, 1977) 22 
U.S.C. 262t (Dec. 19, 1989) 22 U.S.C. 262p-4n (Nov. 5, 1990) Pub. L. 
No. 109-102, sec. 501 (Nov. 14, 2005). 

Broad policy objective: Banking; 
Law: 22 U.S.C. 286cc (Nov. 30, 1983) 22 U.S.C. 286dd (Nov. 30, 1983) 22 
U.S.C. 262o-2 (Oct. 21, 1998). 

Broad policy objective: Burma; 
Law: Pub. L. No. 104-208, sec. 570 (Sept. 30, 1996); 50 U.S.C. 1701 
note (Pub. L. No. 108-61, sec. 5 (Jul. 28, 2003)); Pub. L. No. 109-102, 
sec. 526(a) (Nov. 14, 2005). 

Broad policy objective: Debt; 
Law: 22 U.S.C. 286e-8 (Oct. 10, 1978) 22 U.S.C. 286cc (Nov. 30, 1983) 
22 U.S.C. 286dd (Nov. 30, 1983) 22 U.S.C. 286ee (Nov. 30, 1983) 22 
U.S.C. 262o-2 (Oct. 21, 1998) 22 U.S.C. 286nn (Nov. 29, 1999) 22 U.S.C. 
262p-6 (Nov. 29, 1999). 

Broad policy objective: Employment; 
Law: 22 U.S.C. 2225 (Dec. 30, 1974) 22 U.S.C. 286e-9 (Oct. 10, 1978). 

Broad policy objective: Environment; 
Law: 22 U.S.C. 286kk (Dec. 19, 1989) 22 U.S.C. 286ll (Oct. 24, 1992) 22 
U.S.C. 262o-2 (Oct. 21, 1998). 

Broad policy objective: Exchange rate stability; 
Law: 22 U.S.C. 286y (Nov. 30, 1983) 22 U.S.C. 262o- 2 (Oct. 21, 1998). 

Broad policy objective: Governance; 
Law: 22 U.S.C. 262o-1 (Aug. 23, 1994) 22 U.S.C. 262o-2 (Oct. 21, 1998). 

Broad policy objective: Human rights; 
Law: 22 U.S.C. 262d (Oct. 3, 1977) 22 U.S.C. 262p-4o (Aug. 23, 1994) 
Pub. L. No. 104-208, Sec. 570 (Sept. 30, 1996). 

Broad policy objective: Investment; 
Law: 22 U.S.C. 286e-9 (Oct. 10, 1978) 22 U.S.C. 286s (Oct. 7, 1980) 22 
U.S.C. 286gg (Nov. 30, 1983). 

Broad policy objective: Labor; 
Law: 22 U.S.C. 262p-4p (Aug. 23, 1994) 22 U.S.C. 262o-2 (Oct. 21, 
1998). 

Broad policy objective: Poverty alleviation and education; 
Law: 22 U.S.C. 286kk (Dec. 19, 1989) 22 U.S.C. 286ll (Oct. 24, 1992) 22 
U.S.C. 262o-2 (Oct. 21, 1998) 22 U.S.C. 262p-7 (Nov. 29, 1999) Pub. L. 
No. 109-102, sec. 562 (Nov. 14, 2005). 

Broad policy objective: Military spending and military audit; 
Law: 22 U.S.C. 286mm (Oct. 24, 1992) 22 U.S.C. 262o-1 (Aug. 23, 1994) 
22 U.S.C. 262k-1 (Sept. 30, 1996) 22 U.S.C. 262o-2 (Oct. 21, 1998). 

Broad policy objective: Nuclear and chemical nonproliferation; 
Law: 22 U.S.C. 2799aa-1 (Apr. 30, 1994) 22 U.S.C. 6302 (Apr. 30, 1994) 
22 U.S.C. 6713 (Oct. 21, 1998) 22 U.S.C. 5605 (Dec. 4, 1991). 

Broad policy objective: Religious freedom; 
Law: 22 U.S.C. 262d (Oct. 3, 1977) 22 U.S.C. 6445 (Oct. 27, 1998). 

Broad policy objective: Serbia; 
Law: 50 U.S.C. 1701 note (Pub. L. No. 103-160, sec. 1511 (Nov. 30, 
1993) and Pub. L. No. 104-208, sec. 540 (Feb. 12, 1996)); Pub. L. No. 
109-102, sec. 563 (Nov. 14, 2005). 

Broad policy objective: Terrorism; 
Law: 22 U.S.C. 262d (Oct. 3, 1977) 22 U.S.C. 286e-11 (Oct. 10, 1978) 22 
U.S.C. 262p-4q (Apr. 24, 1996); 22 U.S.C. 262p-4r (Oct. 26, 2001); 22 
U.S.C. 262o-2 (Oct. 21, 1998). 

Broad policy objective: Tibet; 
Law: 22 U.S.C. 6901 note (Pub. L. No. 107-228, sec. 616 (Sept. 30, 
2002)); Pub. L. No. 109-102, sec. 575(a) (Nov. 14, 2005). 

Broad policy objective: Trade; 
Law: 22 U.S.C. 286k (July 31, 1945) 22 U.S.C. 286bb (Nov. 30, 1983) 22 
U.S.C. 286cc (Nov. 30, 1983) 22 U.S.C. 286gg (Nov. 30, 1983) 22 U.S.C. 
262k (Aug. 15, 1985) 22 U.S.C. 262h (Oct. 15, 1986) 22 U.S.C. 262n-3 
(Oct. 21, 1998) 22 U.S.C. 262o-2 (Oct. 21, 1998); Pub. L. No. 109-102, 
sec. 514 (Nov. 14, 2005). 

Broad policy objective: Transparency; 
Law: 22 U.S.C. 286z (Nov. 30, 1983) 22 U.S.C. 286ll (Oct. 24, 1992) 22 
U.S.C. 262o-2 (Oct. 21, 1998). 

Broad policy objective: Use of IMF resources; 
Law: 22 U.S.C. 286u (Oct. 7, 1980) 22 U.S.C. 286ff (Nov. 30, 1983) 22 
U.S.C. 286oo (Nov. 6, 2000). 

Broad policy objective: Women's issues; 
Law: 22 U.S.C. 2225 (Dec. 30, 1974) 22 U.S.C. 262k-2 (Sept. 30, 1996). 

Broad policy objective: Zimbabwe; 
Law: Pub. L. No. 107-99, sec. 4 (Dec. 21, 2001); Pub. L. No. 109- 102, 
sec. 572 (Nov. 14, 2005).  

Source: GAO. 

Notes: The information in this enclosure is based on a GAO analysis of 
policy and directed vote legislative mandates concerning the IMF. 

Mandates shown in bold represent mandates that were enacted since our 
last report in September 2005 and simply replaced older mandates or 
represent amendments to mandates. 

[A] Treasury puts mandates in three broad categories: "policy," 
"directed vote," and "reporting" mandates. Policy mandates direct the 
United States to foster or urge a certain policy at the IMF. Directed 
vote mandates instruct the United States to "oppose" or "vote against" 
loans or other IMF assistance. Reporting mandates are outside the scope 
of this report. 

[End of table] 

[End of Section]

Enclosure III: Comments from the Department of the Treasury: 

DEPARTMENT OF THE TREASURY: 
WASHINGTON, D.C. 20020: 

Mr. Thomas Melito: 
Director, International Affairs and Trade: 
Government Accountability Office: 
441 G Street, N.W: 
Washington, DC 20548: 

Dear Mr. Melito, 

Thank you for your letter of June 14, 2006 and the opportunity to 
review the draft report on Treasury's promotion of U.S. policies at the 
IMF. 

We appreciate the GAO's finding that Treasury, through its internal 
task force, continues to play an effective role in promoting U.S. 
policies at the USAF. As in the past, the report recognizes that the 
task force effectively ensures that issues related to legislative 
mandates in the IMF are systematically and proactively addressed. The 
draft report accurately reflects the process which Treasury has in 
place to advance U.S. policies at the IMF. 

As noted in the past, the extensive mandates tend to undermine our 
effectiveness in influencing the IMF. We would welcome efforts by the 
Congress to effect a consolidation of the legislative mandates to 
remove unnecessary provisions. 

Sincerely, 

Signed By: 

Mark Sobel: 
Deputy Assistant Secretary: 
International Monetary and Financial Policy: 

[End of Section]

Enclosure IV: GAO Contacts and Staff Acknowledgments: 

GAO Contacts: 

Thomas Melito, Director, (202) 512-9601 or melitot@gao.gov: 

Stephanie J. May, Managing Associate General Counsel, (202) 512-6293 
or maysj2@gao.gov: 

Staff Acknowledgments: 

Cheryl Goodman (Assistant Director), Val�rie Leman Nowak, J.J. 
Marzullo, Grace Lui, and Debbie J. Chung also made key contributions to 
this report. 

(320433): 

FOOTNOTES 

[1] The Executive Board oversees the day-to-day business of the IMF. 
The board comprises 24 executive directors who are appointed or elected 
by member countries or by groups of member countries. The President 
appoints, with the advice and consent of the Senate, the U.S. Executive 
Director to represent the United States on the board. 

[2] Pub.L. No. 106-113, � 504(e), 113 Stat. 1501, 1501A-318 (1999). 

[3] See GAO, International Monetary Fund: Efforts to Advance U.S. 
Policies at the Fund, GAO-01-214 (Washington, D.C.: Jan. 29, 2001). 

[4] See GAO, Treasury Maintains a Formal Process to Advance U.S. 
Policies at the International Monetary Fund, GAO-03-401R (Washington, 
D.C.: Feb. 7, 2003); Treasury Continues Its Formal Process to Promote 
U.S. Policies at the International Monetary Fund, GAO-04-928R 
(Washington, D.C.: July 12, 2004); and Treasury Continues to Maintain 
Its Formal Process to Promote U.S. Policies at the International 
Monetary Fund, GAO-05-1015R (Washington, D.C.: Sept. 14, 2005). 

[5] Reporting mandates that require Treasury to report to Congress on 
various issues related to U.S. participation in the IMF constitute a 
third category of legislative mandates. This report does not cover 
reporting mandates because they are not related to advancing U.S. 
policy goals at the IMF.

[6] 22 U.S.C. � 7107 (2004).

[7]  GAO-01-214, GAO-03-401R, GAO-04-928R, and GAO-05-1015R. 

[8] Although the task force helps facilitate coordination between 
Treasury officials and the U.S. Executive Director, it is not the final 
arbiter for determining the U.S. policy position toward the IMF on any 
given issue. The task force is not a review or approval mechanism to 
give Treasury sanction to pursue individual mandates.  

[9] Pub. L. No. 108-447, � 554, 118 Stat. 2809, 3015 (2004). 

[10] Within enclosures I and II, mandates shown in bold represent those 
that replaced expired mandates since our last report in September 2005.

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